• EUR/AUD strengthened on Tuesday as currency pair attracted buying interest after the release of US CPI data.
• The Labor Department report showed that the Consumer Price Index (CPI) rose 0.4% in February, in line with the forecast for a 0.4% increase.
• At GMT 16:46, the pair was trading up 0.17 percent at 1.6547 reversing course from daily low 1.6483(Daily low).
• From a technical viewpoint, RSI is strongly bullish at 51, daily momentum studies, 5, 10 and 11 DMA’s are trending up.
• Immediate resistance is located at 1.6571(38.2%fib), any close above will push the pair towards 1.6603(March 7th high).
• Strong support is seen at 1.6483(38.2% fib) and break below could take the pair towards 1.6421 (Lower BB).
Recommendation: Good to buy around 1.6530, with stop loss of 1.6400 and target price of 1.6620
